There have been many critiques about the current valuation of Ripple’s Token, XRP. This led to the conclusion that XRP is not getting enough traction on the market. However, the truth is that you can measure its traction through its current valuation as an asset on its platform or as a mediator for bank transactions.
XRP plays a significant role in the value of Ripple. You might be wondering how can XRP contribute to the product catalog which Ripple owns. Check out how Ripp and its token can soar high in the crypto market.
What Exactly is the Significance of XRP Token?
Ripple solves the issue of cross-border operations among isolated systems that are not connected through an inter-ledger protocol that links between systems for payment routings. It is made possible by creating an interconnection between the ledgers. It is similar to the concept of TCP which is the protocol of a computer’s ability to communicate with each other.
The Ripple Protocol allows it to get attached to the networks of financial institutions as a positive node. It is designed to perform faster in executing cross-border transactions on different financial systems.
XRP in Action
Ripple uses XRP to all the products it is developing to guarantee swift liquidity. A perfect example is xRapid which utilizes the token as an asset for financial institutions. It enables businesses to make transactions between unique fiat currencies. A financial entity can purchase an amount of token and send it out via the network of the company. This is defined as a Third Party Liquidity Provisioning by Ripple. This is perfect for bank units that are not connected with one another.
Other products of Ripple like xVIa and xCurrent an also enjoy the benefits of the XRP Token since it is accessible and faster with only 3 seconds to execute a transaction compared to other coins in the market. Other benefits include sourcing banks liquidity on demand and in real time without the need to pre-fund a Nostro account.